The review section is showing you the taxable amount of your SS income. If you look at your Form 1040, you should see the full amount of your SS income on Line 6a, but the taxable portion is found on Line 6b. The amount of your social security income that is taxable is dependent upon your total income. Also, check to see if there was any tax withholding - either federal, state, or both.
Generally speaking, if your only income is Social Security, you probably don't make enough money to be required to file a federal tax return.
For those with additional sources of income, the key figure is the Modified Adjusted Gross Income (MAGI). The MAGI includes half of your Social Security, plus other sources of income. Once your MAGI exceeds the base amount for your filing status ($32,000 for Married Filing Jointly, otherwise $25,000), at least part of your Social Security income becomes taxable. The taxable portion of your Social Security income increases once you reach additional MAGI thresholds. TurboTax does all the calculations and enters the amounts on Form 1040 after you enter all of your income. Included with your tax return, you will see a Social Security Benefits Worksheet which will show you the details of how the amount on Line 6b was calculated.
At the state level, many states exempt Social Security from taxation, either partially or completely. Again, if your sole income is from Social Security, it's likely you don't need to file a state return either.
Here is a short video about SS and the related taxes. Check it out if you have a chance to.
You can't amend returns for prior years to reflect social security benefits received in a single lump-sum in the current year. You must include the taxable part of a lump-sum payment of benefits received in the current year (reported to you on Form SSA-1099, Social Security Benefit Statement) in your current year's income, even if the payment includes benefits for an earlier year.
However, there are two ways to determine the amount of income to include:
- You can use your current year's income to figure the taxable part of the total benefits received in the current year; or
- You may make an election to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year
You are given these options when you enter the SSA-1099.
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